Tag: Australian Market

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LICs LICs

Metrics Income Seeks to Raise up to $152m through Institutional Placement and Unit Purchase Plan

Currently, their Annual Yield is 6.98 percent and their dividend amount is 0.009. Metrics Income’s P/E Ratio is 13.8 percent. 

Metrics Income Opportunities Trust’s Revenue is 30.70 million till June 2021. Their last traded price is $2.05. The trust targets a cash yield of 7 percent p.a. which is intended to be paid monthly with a total target return of 8 percent p.a to 10 percent p.a in each case net of fees and expenses.

Their Net Asset Value is $407,156,629. Metrics Income Opportunities Trust ((MOT)) announced on August 26, 2021, that they intend to raise $52.86 million by issuing 26.04 million new fully paid ordinary MOT units to wholesale investors at a price of $2.03 per unit. 

Furthermore, the Trust announced a Unit Purchase Plan (UPP) for existing eligible unit holders to purchase up to $30,000 in new units at a price of $2.03. The Trust hopes to raise up to $100 million through the UPP. Excessive applications may be scaled back on a pro rata basis. The UPP is set to open on September 6, 2021, and close on September 30, 2021.

The offer price of $2.03 corresponds to the NAV at the time of the announcement, with the UPP allowing unit holders to acquire units at a 1.9 percent discount to the unit price at the close of the trading day preceding the announcement (25 August 2021).

The proceeds from the institutional placement and the UPP will be invested in accordance with MOT’s investment mandate and target return.

Company Profile 

Metrics Income Opportunities Trust seeks to provide investors exposure to a portfolio of private credit investments. The Investment Objective of the Trust is to provide monthly cash income, preserve investor capital and manage investment risks, while seeking to provide potential for upside gains through investments in private credit and other assets such as Warrants, Options, Preference Shares and Equity.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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ETFs ETFs

Vanguard Diversified Growth Index ETF: A Diversified fund at low cost

Investment Objective

Vanguard Diversified Growth Index ETF seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax.

Process

The Vanguard Diversified Index ETF series follows the investment process of the unlisted funds, but with some additional trade-offs of the listed structure, including brokerage costs and variable bid-ask spreads. The methodology starts by defining reasonable investment horizons for each portfolio and allocates to broad asset-class exposures such as equities and fixed interest based on the defensive/growth split. Then, sub asset allocation within classes follows a market-cap weighting approach, while allowing for behavioural biases and regulatory factors specific to each local market. The SAA determination is aided by the Vanguard Capital Markets Model, which forecasts asset-class returns through scenario analysis. An annual review may identify major structural shifts that can lead to a revised SAA.Underlying sector exposures are realised through in-house index-tracking funds. 

Portfolio

Vanguard’s straightforward approach applies a strategic asset allocation that is updated periodically and broadly mirrors its equivalent unlisted fund range. Dynamic and tactical asset allocation are not used. Vanguard sticks to the traditional asset classes of equities, fixed interest, and cash, while avoiding alternatives and unlisted assets. The four diversified options are designed to suit different investor objectives and risk profiles. Vanguard Conservative has a defensive/growth split of 70/30, Balanced is 50/50, Growth is 30/70, and High Growth is 10/90. 

Performance

 In comparison to unlisted peers, all ETFs sit in the top quartile over a trailing three-year time period as at June 2021.

Performance return (%)

Source: Fact Sheet

Asset Allocation(%)

Source: Fact sheet

About the fund

The ETF gives investors low-cost access to a variety of sector funds, allowing them to diversify across several asset classes. The Growth ETF is a growth-oriented exchange-traded fund (ETF) created for investors seeking long-term capital growth. A 30% allocation to income asset classes and a 70% allocation to growth asset classes are the goals of the ETF and suitable to buy and hold investors seeking long term capital growth, but requiring some diversification benefits of fixed income to reduce volatility.

 (Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Funds Funds

Pendal Sustainable Conservative Fund: An effective asset allocated fund with ESG overlay

It is noted that the investors would be comfortable as the ESG considerations mirror with those of the Manager’s approach- the strategy does not invest in tobacco or weapons manufacturing as well as the Fund has negative screens (alcohol, gaming, pornography) with activities materiality caveat. The fund utilises internal as well as external fund managers in order to make effective decisions while allocating its assets. The fund size is $345m.            

Downside Risks:

  • ESG breaches by investments in the portfolio.
  • Underlying managers fail to deliver performance or breach mandates.  
  • Personnel change – turnover in the team or portfolio managers. 
  • Broader market risk.

Fund Performance & Current Positioning:

(%)FundBenchmarkOut-performance
1-month 1.07%0.74%+0.33%
3-months 3.62%3.09%+0.53%
6-months8.17%5.89%+2.28%
1-year 9.46%7.40%+2.06%
3-year (p.a.)4.82%5.28%-0.46%
5-year (p.a.)4.10%4.76%-0.66%
Since Inception (p.a.)+7.15%+3.86%+3.29%

(Source: Pendal; Past performance is not an indicator of future performance)

Fund Positioning:

 % of Portfolio
Australian shares9.0%
International shares13.0%
Australian fixed interest17.2%
International fixed interest16.2%
Australian property securities3.4%
International property securities 3.1%
Alternative investments15.9%

(Source: Pendal)

Key Highlights:

  • Investment Team:

The Pendal Multi-Asset team is headed by the very experienced Michael Blayney. The team is made up of 4 members- 3 Portfolio Managers and 1 Analyst. The team is also supported by Edwina Matthews who is Pendal’s Head of Responsible Investments.

  • Investment Philosophy and Process:

The Fund’s core belief is that markets are inefficient, and that active management can improve risk and return. The process basically consists of three approaches namely; Strategic Asset Allocation Approach (SAA), Environmental, Social and Governance (ESG) integration and construction of benchmark using neutral’s asset allocation position and index returns.

About the Fund:

The Fund is an actively managed multi-asset portfolio across a range of asset classes and incorporates a range of sustainable, ethical and financial considerations. The strategy aims to provide real return over inflation over the medium term. The strategy’s neutral target asset allocation is 75% defensive assets and 25% growth assets, which is suitable for ESG focused conservative investors.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Funds Funds

Janus Henderson Australian Fixed Interest Fund: A solid core fixed interest offering

over rolling three-year periods. The fund invests in a range of securities including government, semi-government, corporate and asset backed securities.              

Downside Risks:

  • Investment strategy selection fails to yield alpha.
  • Lead PM departs or significant turnover in the broader investment team. 
  • Credit / interest rates risk.  

Fund Performance & Current Positioning:

(%)FundBenchmarkOut-performance
1-mths0.05%0.09%-0.09%
3-mths2.78%2.55%+0.23%
6-mths4.77%4.23%+0.54%
1-year (p.a.)1.92%1.05%+0.89%
3-year (p.a.)4.90%4.52%+0.38%
5-year (p.a.)3.62%3.33%+0.29%
Inception6.74%6.51%+0.23%

(Source: Janus Henderson)

Sector Allocation:

(Source: Janus Henderson)

Key Highlights:

  • Investment Team:

The Janus Henderson Australian fixed interest team, headed by Jay Sivapalan, is highly experienced and well resourced. The investment team consists of highly qualified people having adequate work experience in investment, portfolio management and credit analysis.

  • Investment Philosophy and Process:

The investment philosophy of this fund focuses on investing in compelling opportunities, diversified strategies, capital preservation and strategic view. The Fund’s investment and portfolio construction process consists of Fundamental Research, Strategy Formulation and Portfolio Construction. 

  • Credit Process:

ESG is integrated into the credit process. Since the manager believes in ‘quality before price’ philosophy, ESG considerations are fundamental to their four-pillar bottom-up credit analysis, which are: business risk, financial risk, management profile and ESG risk.

About the Company:

Janus Henderson is a global asset manager with more than 340 investment professionals and expertise across all major asset classes. Its individual, intermediary and institutional clients span the globe and entrust it with more than $500bn of their assets. Janus Henderson’s commitment to active management offers clients the opportunity to outperform passive strategies over the course of market cycles. Through times of both market calm and growing uncertainty, its managers apply their experience weighing risk versus reward potential – seeking to ensure clients are on the right side of change.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
LICs LICs

Sandon Capital Declares Special Dividend and Further Aligns Interest with Shareholders

Market Capitalisation of Sandon Capital Investments Limited $111.99 Million. Their last trade was 1.01 on 22nd September 2021.

Net profit is 37.3 Million. Their Annual Revenue is 56.5 Million. 

Sandon Capital Investments Limited (SCN) has declared a fully franked special dividend of 1cps in addition to the full franked FY21 final dividend of 2.75cps. 

The Board anticipates paying an interim FY22 dividend of 2.75cps, fully franked, subject to the Company having sufficient profit reserves, franking credits and it is within prudent business practices. 

This would represent a 10% increase on the FY21 interim dividend. SNC currently has 32.1cps in profits reserves and more than 9cps in franking credits.

In addition to this, the Manager announced that from FY22 onwards, the Manager intends to invest at least 50% of the after-tax proceeds of performance fees earned from SNC in SNC shares. 

Shares will be purchased on-market and will be acquired after the payment of the relevant performance fee where SNC’s share price is trading at a discount to its after-tax NTA. 

The Manager and entities associated with its directors and shareholders currently have in excess of $7.3m invested in funds managed by Sandon Capital Pty Ltd, including 2.1m SNC shares.

Company Profile 

Sandon Capital Investments Limited is an investment company. The Company is engaged in investing activities, including tangible assets, marketable securities or cash. The Company will seek to invest in securities, which Sandon Capital Pty Ltd (the Manager) considers to be under-valued and where the Manager considers there to be opportunity to encourage changes to unlock what the Manager has identified as intrinsic value. The Manager may also invest, from time to time, in market-based investment opportunities, such as placements, merger arbitrage and other investments it considers appropriate. Sandon Capital Pty Ltd is the investment manager of the Company.

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
IPO Watch

IPO debut of SSH Group fetches 30% gain on listing

The issue was open for retail investors from 30th July, 2021 to 27th August 2021. GTT Ventures and Taurus Capital Group were appointed as lead managers. 

The company also offered 20,500,000 shares as Vendor offer, 3,250,000 shares as convertible note share offer, 7,000,000 shares as option offer to advisers and 10,000,000 shares as option offer to executives. 

The proceeds of the funds are said to be used mainly for purchasing capital equipment for site services, paying out short-term debts and for offers and acquisition.

SSH shares were listed on ASX on 17th September, 2021 and delivered a decent listing gains of 30% by opening at AU$0.265. The demand on first day led the stock to surge to a high of AU$0.295, garnering a volume of over 5.82 million. The market capitalization of SSH Group comes to be at AU$ 14.36 million and the enterprise value is AU$ 10,106,977. 

SSH Group has identified myriad opportunities for future growth and expansion of the divisions in Western Australia. It estimates that there is over $39.3 billion of market revenue that is not serviced by major players in the operating industries. It currently possesses total clients beyond 100.

About the company:

The company provides a range of safety and people services, including security, labour hire, and road safety services, to the construction, mining, civil and government market sectors in Western Australia. It was founded in Australia and headquartered in Perth, Western Australia. Currently it has the workforce of 700 plus people. The main purpose of the SSH Group is to improve outcomes for Australian projects and communities.

 (Source: asx.com.au, sshgroup.com.au)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
IPO Watch

IPO debut of SSH Group fetches 30% gain on listing

The issue was open for retail investors from 30th July, 2021 to 27th August 2021. GTT Ventures and Taurus Capital Group were appointed as lead managers. 

The company also offered 20,500,000 shares as Vendor offer, 3,250,000 shares as convertible note share offer, 7,000,000 shares as option offer to advisers and 10,000,000 shares as option offer to executives. 

The proceeds of the funds are said to be used mainly for purchasing capital equipment for site services, paying out short-term debts and for offers and acquisition.

SSH shares were listed on ASX on 17th September, 2021 and delivered a decent listing gains of 30% by opening at AU$0.265. The demand on first day led the stock to surge to a high of AU$0.295, garnering a volume of over 5.82 million. The market capitalization of SSH Group comes to be at AU$ 14.36 million and the enterprise value is AU$ 10,106,977. 

SSH Group has identified myriad opportunities for future growth and expansion of the divisions in Western Australia. It estimates that there is over $39.3 billion of market revenue that is not serviced by major players in the operating industries. It currently possesses total clients beyond 100.

About the company:

The company provides a range of safety and people services, including security, labour hire, and road safety services, to the construction, mining, civil and government market sectors in Western Australia. It was founded in Australia and headquartered in Perth, Western Australia. Currently it has the workforce of 700 plus people. The main purpose of the SSH Group is to improve outcomes for Australian projects and communities.

 (Source: asx.com.au, sshgroup.com.au)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.